It's Time For Your Insurance Check-up!

This picturesque farmhouse is set in Ashe County, North Carolina.  It is located at the edge of Three Top Mountain and the New River.  It is on the edge of a National Park.  The view from the back of the house is of 3 Top Mountain.  The story below is an prime example of why it is so important to review your homeowners insurance coverage.  FYI...This farmhouse will be going on the market April 1st, 2008.

Some of the homes I am marketing are vacant.  The cost of insuring a vacant house can become an issue if the insurance company finds out the house has been vacant over six months.  The policy cost can increase greatly.  I was recently talking to my assistant, Barbara, about this issue.  She then told me what happened to her father-in-law. 

He had owned his home for 25 years(see photo), kept the house insured with the same company and agent during all of that time.  After an electrical house fire and working with the insurance company to repair the damages, they were told that the policy value was $100,000 under the value of the home.  The replacement value for the structure and contents used by the insurance company was based on an old value.  The policy hadn't been adjusted in 10 years and didn't account for rising home values, increase in construction materials, and in addition his home in the mountains of North Carolina had become a popular retirement spot for Floridians in the summer.  Her father-in-law received payment from the insurance company for a portion of the damages but ended up having a lot of extensive repairs.  Due to the county inspectors investigating the cause of the fire, this homeowner was required to meet the current electrical and plumbing codes. This owner had to replace all plumbing, rewire the entire home, replace the bath fixtures, water heater, kitchen cabinets, counters and appliances.  Because the owner loved and cared for his home, he had previously put on a new roof, siding and replacement windows.  With the exception of the furnace and front porch, this home has been completely remodeled.  Because his policy did not match the value of his home the amount of money the insurance company was able to give hime was inadequate.  Unforutnately, this fire cost him tens of thousands of dollars out of his own pocket.  This is money he had set aside for retirement, money he will need for his care as he ages.  Though some companies, such as State Farm adjust this replacement value annually based on inflation and construction material costs, not all companies do.  So if you haven't had an "insurance check-up" lately, you owe it to yourself and your family to make sure your policy is up to date. 

Mary Richards  Reece & Nichols Realtors  maryrichards@reeceandnichols.com www.kcmoves.com 816-853-9698 (cell)